Verizon's Phila. FiOS bid advances

Verizon won an important City Council committee vote yesterday - with full Council approval likely - in its bid to compete with Comcast for customers in Philadelphia.

Full approval, which could come in two weeks, means that most Philadelphians will eventually have an option besides Comcast, the cable giant with about 1.8 million subscribers in the city, the Pennsylvania suburbs, South Jersey, and northern Delaware.

The Committee on Public Property and Public Works yesterday recommended approval of a 15-year franchise agreement that would allow Verizon to build a citywide $1 billion fiber-optic network within seven years. Verizon's FiOS system could begin service to some homes by the end of the year, according to the company.

The bill was amended to give the Nutter administration more power to enforce minority-contracting conditions, then was passed unanimously. It could be amended further by Council, which will hear the bill on first reading next week, with final passage possible Feb. 5.

"We feel that we're another step closer to bringing cable choice and competition to Philadelphia consumers," said Sharon Shaffer, a Verizon spokeswoman.

Verizon has been negotiating with the administration since June. In November, both sides sought Council approval for the accord, but were rebuffed after members raised concerns over which neighborhoods would receive service first and questioned whether the deal offered enough opportunities for minority-owned companies.

The committee yesterday had the option of allowing a final vote on the agreement next week, but decided to give members more time to get all the information they need, Councilman William K. Greenlee said.

In recent days, Verizon has run radio ads urging residents to call their Council representative in support of competition.

"It's been a very effective way for us to let the public know that we're involved in negotiations . . . and if they want to get involved, then the best way is to make their voice heard to their representative or City Council person," Shaffer said.

Despite Comcast's influence and presence, Council members have said their constituents want competition among cable providers.

Perhaps the toughest obstacle was the desire by representatives for all 10 Council districts to get service for some of their constituents early on. Verizon obliged with a plan to advance throughout neighborhoods across the city.

Councilwoman Joan Krajewski, who complained the loudest, was one of the seven committee members who voted yesterday to recommend the bill.

"We're about to bring broadband competition and cable competition to the city," said Councilman James F. Kenney, another committee member.

Councilman Bill Green, who is not on the committee, criticized the deal for not matching Comcast in public-access payments over the next five years.

Verizon has committed to $6.7 million for public access over the life of the contract. That matches Comcast's commitment over its 15-year contract, but the Comcast contract began in 2000, seven years before a public-access structure was created. Philadelphia remains the largest U.S. city without a public-access network, though five channels are to go live in the next few months.

Shaffer described the Verizon proposal as "more than generous" in its support of public access.